One reason for the rebound is the conclusion of the General Motors strike at the end of October.
Friday's November jobs report will provide insight into whether steady hiring remains a source of strength for the USA economy even as the Trump administration's trade conflicts have heightened uncertainties for employers. With surprisingly low inflation, the Federal Reserve has reduced its reference short-term benchmark rate three times this year.
The news wasn't much better nationally as the Canadian job market lost a surprise 71,200 net positions in November while the unemployment rate rose to 5.9 per cent, the highest in more than a year, data showed on Friday. "The Fed will see this as clear vindication of their decision to stop cutting rates".
Regionally, Quebec lost 45,100 jobs in November due to a decline in manufacturing as well as accommodation and food services.
Employment also increased in manufacturing, reflecting the return of workers from a strike. That lifted job growth well above its monthly average of 180,000 this year. The government also revised its increase in new jobs in October from 128,000 to 156,000. Taking the average over the past 2 months, job growth has been 211,000 per month (netting out the impact of GM on each month's numbers). -China trade war was ended.
"Today's job report, more than any other report in recent months, squashed any lingering concerns about an imminent recession in the U.S. economy", said Gad Levanon, head of the Conference Board's Labor Market Institute.
Economic growth estimates for the fourth quarter are converging around a 1.8% annualized rate. "Over the same period, total hours worked grew by 0.2%". With lingering uncertainty regarding the U.S.
Oil prices were lower after OPEC and its allies agreed to cut production by 500,000 barrels per day through March. The unemployment rate has stayed at or below 4 percent for 21 straight months, and during that time African Americans, Hispanics, Asians, those with disabilities, and those without a high school diploma all experienced series-low unemployment rates.
Canada's dollar sank on the report, which cast doubt on the resiliency of the country's domestic outlook, which has been driven largely by a jobs market that has been generating some of the fastest gains in decades.
Temperatures were cooler than normal in November, which could have impacted hiring at construction sites, mines and transportation companies. In 2018, it added about 223,000 jobs a month, a bit under what it added in 2015 and well under the 251,000 added a month in 2014. The average monthly job gains for 2019 is 167,000.
The private sector in the United States added 266,000 jobs and lowered the unemployment rate to 3.5%, equaling a historic low in the last half-century. The major downside is that workers seem to remain insecure about their employment prospects, as evidenced by the low quit rates and the relatively modest pace of wage growth. The magnitude of last month's increase in payrolls is at odds with other labour market data.
November wasn't a great month for the job market. Before the start of this streak, nominal average hourly wage gains had not reached 3 percent in more than 10 years.
"Their customers are here in the US and the USA consumer is still strong", said economist Nick Bunker of the Indeed Hiring Lab.
While the jobs numbers were partly boosted by almost 50,000 auto workers returning to work after a General Motors strike, they are still surprisingly strong.